The state-backed National Integrated Circuit Industry Investment Fund Corporation will buy a 24% equity stake in a subsidiary of Hong Kong-listed chipmaker ZTE, South China Morning Post reported, citing a regulatory filing from the company. The RMB2.4 billion (US$375.6 million) stake in ZTE Microelectronics Technology – which develops chipsets for cellular base stations and semiconductor technologies used in mobile devices – follows a pledge last year from the State Council to infuse China’s semiconductor supply chain with copious capital to better ensure the country’s information security. ZTE Microelectronics last year increased its net profit by 258% to RMB458.64 million on the back of record turnover.
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